RPA in Finance and Accounting

Robotic process automation (RPA) has been used for years by financial teams to increase the accuracy, speed, and efficiency of particular activities. By integrating RPA with machine learning, they are now elevating it to a new level (ML). In fact, according to recent Gartner data, 80% of finance directors have either deployed RPA or intend to do so.

Automation in finance first began in the 1990s at MIT. Back then, it was used to quickly and accurately read the handwritten portions of checks. Today's banks and financial service companies employ a variety of applications, such as enterprise resource planning (ERP) and customer relationship management (CRM) platforms, using RPA capabilities in addition to checking to process. The technologies enable data manipulation, reaction triggering, and system-to-system communication.

The most recent RPA technologies employ integrated AI and ML capabilities to "review" reports, identify possible problems, and gain experience. For significant cost savings, the RPA systems operate continuously and provide a high level of security for financial processes.

Evolution of RPA in Finance

Robotic process automation (RPA) is the deployment of low-code software "bots" to complete time-consuming, repetitive tasks that human workers would otherwise handle. Such tasks include processing invoices, data entry, compliance reporting, etc. RPA is a component of the broader hyper-automation movement that enables businesses to switch from automation that imitates human behaviour to automation that uses data to optimize end-to-end financial operations.

RPA robots are suitable for carrying out numerous repetitive jobs automatically. Employees can then devote their attention to more fulfilling tasks, such as forging lasting connections with clients, analyzing data to obtain a competitive edge, or developing innovative financial products.

Five Ways to Use RPA in Finance

When using RPA technology, many financial directors focus on jobs that are the most vulnerable to human mistakes, produce the biggest workflow obstacles, or result in errors that negatively affect staff engagement and customer service.

Here are five ways to transform your financial institution utilizing an RPA platform powered by AI and ML.

Promoting Sustainable Growth

Banks and financial services companies face intense competition, especially in an environment of low-interest rates and expensive digital transformation projects. Finding cross-selling possibilities for new financial planning products is one method to boost income.

A financial institution can automatically provide client behavioural data to particular staff members by implementing RPA. ML models assist in classifying clients based on their activity so that the most alluring goods or services can be suggested to them. For instance, banks are aware of the clients who could be most eager to obtain a new line of credit.

Increasing Operational Effectiveness

By automating the transaction-intensive, labour-intensive operations that need reconciliation, RPA technology lowers operating expenses. Digital employees can gather information from various back-office operations, reconcile figures, and act immediately to fix problems. Digital employees, for instance, may use natural language processing to assess the content that is sent along with invoices and automatically route issues to the appropriate team.

Refreshing the Client Experience

RPA tools help companies improve their client experience from original onboarding to account updates. With automatic Know Your Customer (KYC) certification, new customers create new accounts and apply for additional goods in minutes. RPA also aids in alerting relevant parties to specific situations, including client concerns about a new mobile banking function. Data regarding previous similar complaints may be filtered using machine learning to identify the most significant areas for improvement.

Combating Financial Crime

Financial institutions require suitable cybersecurity technologies to identify and prevent fraud for due diligence investigations, regulatory screening, and transaction tracking and inquiry. Fraud detection is done more quickly and accurately, thanks to RPA. RPA bots determine if the data complies with federal anti-money laundering (AML) regulations. ML assists by studying deviations to determine their causes and identify fraud.

Maintaining Adherence to Regulations

Financial firms may employ RPA to enhance financial process control and reduce the risks of regulatory fines and reputational harm. RPA assists in combining data from certain systems or documents, hence minimizing the need for human business procedures in compliance reporting. For quicker decision-making, ML takes a step further by determining the data that an auditor would need to review, retrieving it, and putting it in a handy location.